Malta to record least negative economic growth, EC forecasts

Economy, consumers

The European Commission is expecting Malta to record the least negative economic growth in the Euro Area this year, announced the Ministry for Finance. In a statement issued on Tuesday, the Ministry said it welcomed the 2020 Summer Economic Forecast published today.

The European Commission notes that, although the disease and containment measures taken by the government to contain the spread of COVID-19 has had a negative impact on growth, the numerous financial aid packages provided by the Government are expected to help cushion the economic impact.

According to the European Commission the economic fall in output is expected to be fully recovered next year as real GDP growth is expected to rise to 6.3% thus exceeding the EU and Euro Area averages.

Inflation is expected to decrease by 0.8% in 2020 and remain at a relatively low level of 1.2% in 2021.

Net exports are also expected to contribute significantly to the rebound as global trade gradually normalises.

Minister for Finance and Financial Services Edward Scicluna said that he is pleased to note that the European Commission sees the main driver of the recovery coming from investment, supported by the recovery packages announced by the Government.